Enefit increases its share capital by 45 million euros and will invest in development – Economy, finance

The electricity trading and production company Enefit in Latvia has experienced rapid growth in 2023, expanding its customer portfolio to over 115,000 households and becoming the third largest provider of solar energy systems for private individuals. In order to strengthen the growth of operations, Enefit’s share capital has been increased by 45 million euros, invested by the company’s parent company – the Estonian energy company Enefit AS, which is part of the Eesti Energia holding company.

“2023. we have successfully developed our operations, maintaining a stable market position as the second largest electricity trader in Latvia. The increase of the share capital is a natural continuation: that is Enefit groups a sign of trust and an important investment to strengthen Enefit positions in Latvia, anticipating rapid growth of the company in the near future. We plan to invest up to five million euros in the development of the public electric car charging network this year alone, the expansion of energy storage or battery solutions and the development of solar parks for business customers, which we successfully launched last year, are also planned,” says SIA. Enefit chairman of the board Mārtiņš Vancāns.

Also for the first time Enefit a board of a company registered in the Commercial Register in the history of its existence, which will attract foreign expertise Enefit within the group, experts from Estonia and Poland will work in the council: Eesti Energia board member Kelli Tos-Kaasik (Kelli Toss-Kaasik), Enefit AS retail manager Raul Tutt, Enefit AS board member Rīdik Poopuu, Enefit AS financial director Nevel Jogi (Nevel Jogi) and the Polish company Enefit Sp. zo.o. manager Lukasz Karol Musialkiewicz.

Overall last year Enefit It has sold electricity and natural gas in the Latvian market in the amount of 1754 GWh, while the turnover of the company has reached 197.57 million euros. Compared to the indicators of 2022, it has decreased by a third, due to the sharp drop in electricity and natural gas prices in the market. If the average electricity market price NordPool on the stock exchange in 2022 was 226.92 euros per megawatt hour, then last year it was only 93.89 euros per megawatt hour, but the average price of natural gas on the TTF exchange experienced an almost three-fold drop. The decrease in the prices of energy resources was facilitated by both the economic recession in the region and, accordingly, lower demand, as well as the sufficiency of natural gas in Europe, because after the Russian invasion of Ukraine, the countries of the region hurried to provide their gas storages with alternative suppliers. Enefit EBITDA, or profit from the company’s core operations before interest, taxes, depreciation and amortization deductions, was 1.94 million euros in 2023, while 45.2 million euros were paid in direct and indirect tax payments.

in 2023 Enefit began active activities in the development of the public electric car charging network, concluding the first long-term land lease and equipment installation contracts. Also, the company has invested in attracting and developing qualified workforce in order to increase work efficiency. The number of employees in the company has increased by 23% in 2023.

Enefit group holding Eesti Energia In 2023, investments continued in the development of operations in all represented markets, and the total amount of investments reached 779.3 million euros, of which 338.5 million euros were directed to the development of renewable energy production.

It is planned that this year too Enefit will continue work on servicing private individuals and business clients, expanding the portfolios of both segments, as well as promote the development of the offer of renewable energy storage and energy efficiency solutions, including opening the first Enefit electric car public charging stations.

Ltd Enefit

Ltd Enefit is the second largest electricity trader in Latvia, with a total market share of 26%. Along with the widest range of electricity purchase products on the market Enefit also offers energy solutions, natural gas and support tools for increasing energy efficiency for companies, as well as development, installation and financing of battery technology and solar panel system solutions. Ltd Enefit group holding Eesti Energia is the largest producer of wind energy in the Baltics. Ltd Enefit was founded in 2006. The company is a registered trader of electricity and natural gas throughout the territory of Latvia and as a construction merchant in the Register of Building Merchants. In the international market Enefit is represented in Estonia, Lithuania, Poland and Finland.

SIA Enefit